Debate on FDI in Retail

Today, Meenakshi Sundararajan School of Management conducted a debate on "Foreign Direct Investment in retail" commencing the debate with a prayer and a floral tribute to the founder of the institution. Followed by Dr.H.Sankaran, Principal and Shri V.S.Vikram Director gave a wonderful welcome address and felicitations to students, chief guest and speakers.

The Introduction of chief guest & speakers were given by Prof. Saiju.M.John HOD. 

Chief Guest of the Debate:

 Prof.S.Badrinathan, Advisor (Development), IFMR, Chennai

Participants of the Debate: 

Against FDI: 

1. Mr.L.Annamalai (MICA), Founder/Ideator of OHO Productions, Chennai 
2. Mr.S.Sambamoorthy, Founder of Howzatt & Founder/Ideator of OHO Productions, Chennai

For FDI: 

1. Mr. Manu Srinivas (MICA), Founder of Kappi Cheenu, Chennai
2. Mr. Manoj Ramanan (IIM-C)

The purpose of the Debate was to make the students understand

• The aspects of FDI
• FDI from a Socio-economic perspective
• FDI in retail's postitive and negative impact on the economy

Against FDI: 

Mr.L.Annamalai & Mr.S.Sambamoorthy spoke about

Globalization and Foreign Influx, Market Imperialism, Business point of view of Kirana shops in India, Indian entrepreneurs (Annachies), Middle men problem in retail industry, Governments Intervention to have price and margin control, Indians attraction towards western culture, State government’s acceptance towards FDI, Kirana shop's hospitality, flexibility, personal relationship with the customers, Convenience seekers in India,

Margin fixation by retailers, Sustainability of FDI in longer run, Negative impact of FDI on Indian products, Short and long term vision of Indian government, Profits taken out of India by Foreign players and SEZ's contract with government.

For FDI:

Mr. Manoj Ramanan & Mr. Manu Srinivas spoke about

Indian market players, Quality of food related products in Kirana shops, Price hike on Food related products, Liberalization, Quality of superior products, Foreign retailer's world class processes, 30% local rule on foreign retailers, FDI's pull towards the world class standards, US(60 - 70%) and Indian (20%) farmers margin on MRP, Wastages on perishable goods because of lack of cool storage for the farmers, Benefits of the Indian farmers, Increase in competition, Globalization of Indian brands, Shift from Emotional aspects to rational aspects, Benefits of Foreign retailer’s competition and Manufacturing companies collaboration with foreign companies. 

Finally, the adjudicator Prof.S.Badrinathan concluded the debate and gave invaluable advice to the management students by sharing his professional experience.